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PLBY Group, Inc. (PLBY)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $33.5M, down 15% YoY due primarily to a one-time Q4’23 licensing acceleration; adjusted EBITDA was approximately breakeven ($0.1M loss), and would have been $2.6M excluding FX losses; net loss was $12.5M .
  • Management introduced 2025 guidance of approximately $120M revenue, positive adjusted EBITDA and full-year cash generation, underpinned by 86% of licensing revenue secured via guaranteed minimums; transition costs are expected in H1 2025 as digital assets migrate to Byborg .
  • Strategic reset advanced with Byborg licensing agreement ($300M minimum guarantees over 15 years; $20M per year) and balance-sheet actions (debt forgiveness and preferred conversion); Honey Birdette retained and returned to cash flow generation ($6.1M in 2024) .
  • Stock reaction catalyst: execution on asset-light pivot (closing transition by June), incremental licensing deals (gaming, events, content), and visibility to free-cash-flow positive operations in 2025; special meeting outcomes on Byborg follow-on equity may accelerate deleveraging .

What Went Well and What Went Wrong

What Went Well

  • Asset-light transition milestone: closed Byborg licensing deal ($20M annually; $300M MG) and initial $22.4M equity investment; negotiated ~$37M debt forgiveness; preferred conversion at $1.85/share in Jan-2025 supports deleveraging .
  • Honey Birdette improvements: 2024 cash flow $6.1M; Q4 same-store sales +4% YoY; gross margin expanded to 60% from 51% amid reduced promotions and higher full-price sell-through .
  • Leadership tone on growth: CEO emphasized focus on larger, higher-quality licensing deals (e.g., gaming), magazine relaunch as brand “bible,” and new monetization (sponsorships, events, paid fan voting) to expand audience without heavy marketing spend .

What Went Wrong

  • Licensing headwinds from China: Q4 licensing revenue fell to $7.8M from $13.4M YoY, largely due to $5.1M accelerated recognition in Q4’23 tied to termination of the largest China licensee; total revenue down 15% YoY to $33.5M .
  • FX and digital costs weighed on profitability: adjusted EBITDA of $(0.1)M impacted by ~$2.8M FX swing YoY and $1.8M higher digital operating expenses from building the Playboy Club team .
  • Prior-quarter impairments and volatility: Q3 2024 posted adjusted EBITDA of $(1.8)M and significant impairment charges; licensing contraction from terminated China agreements constrained near-term profitability .

Financial Results

Headline Financials vs Prior Quarters (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$24.885 $12.864 $33.493
Net Loss ($USD Millions)$(16.652) $(33.755) $(12.543)
Net Loss per Share (basic & diluted)$(0.23) $(0.45) $(0.15)
Adjusted EBITDA ($USD Millions)$(2.936) $(1.764) $(0.131)

Year-over-Year Comparison (Q4 2023 → Q4 2024)

MetricQ4 2023Q4 2024
Revenue ($USD Millions)$39.364 $33.493
Net Loss ($USD Millions)$(3.758) $(12.543)
Net Loss per Share (basic & diluted)$(0.05) $(0.15)
Adjusted EBITDA ($USD Millions)$1.122 $(0.131)

Segment Revenue Breakdown

SegmentQ2 2024Q3 2024Q4 2024
Licensing ($USD Millions)$5.3 $7.4 $7.8
Digital Subscriptions & Content ($USD Millions)$5.1 $5.5 $5.8
Direct-to-Consumer ($USD Millions)$14.5 N/A (HB classified as discontinued ops) $19.9

Notes: Q3 2024 DTC excluded due to Honey Birdette temporarily classified as discontinued operations; Q4 reclassified HB back to continuing operations .

KPIs and Balance Sheet

KPI / MetricQ4 2024
Honey Birdette same-store sales YoY+4%
Honey Birdette gross margin60% (from 51% YoY)
Cash & Cash Equivalents (Dec 31, 2024)$30.9M
LT Debt, net of unrestricted cash (Dec 31, 2024)$122.2M
FY 2024 Adjusted EBITDA Loss$(6.253)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025Not previously provided≈$120M New
Adjusted EBITDAFY 2025Not previously providedPositive New
Cash FlowFY 2025Not previously providedFull-year positive New
Licensing MixFY 2025Not previously provided~86% of licensing revenue secured via contracted MGs New
Transition CostsH1 2025Not previously providedCertain one-time transition service expenses expected New
Net Senior Debt TargetFY 2025 year-endNot previously providedReduce to < $100M New
Byborg Minimum Guarantees15-year termLOI Oct-2024$20M/year MG; $300M total; profit share on net profits Formalized

Earnings Call Themes & Trends

TopicQ2 2024 (prior)Q3 2024 (prior)Q4 2024 (current)Trend
Asset-light transitionAnnounced strategy; ATM filed; exclusivity to repay debt at discount Debt restructured; Byborg equity closed; LOI for licensing Byborg licensing finalized; transition to complete by June 2025 Accelerating execution
Licensing pipeline & ChinaNew apparel/accessories partner in China; $45M MG pipeline Licensing down due to termination of two China agreements Licensing stable QoQ; YoY decline due to prior-year acceleration; focus on larger deals Rebuild underway
Digital monetization (AI/webcam/Club)Rebuild Playboy.com; creator economy focus LOI to operate digital assets, add AI/webcam lines Licensing deal closed to operate Playboy Plus/TV/Club; profit share Monetization shift to licensing
Honey Birdette strategyDTC pressure; reduced promo days to improve margins Classified as discontinued ops; exploring divestiture Retained; cash flow positive; margin and SSS improved Turnaround gaining traction
Magazine & contentReturn of magazine in early 2025; build sponsorship pipeline Magazine as marketing vehicle Magazine relaunched; quarterly plan; paid fan voting, podcasts/videos Brand elevation

Management Commentary

  • “We largely completed a comprehensive transformation…moving to an asset-light model…With a leaner operating model and stronger balance sheet, we are now well-positioned to focus on growth.” — CEO Ben Kohn .
  • “Following our extensive restructuring…we expect to generate approximately $120 million in revenue in 2025…approximately 86% of the licensing revenue currently secured through contracted guaranteed minimums.” — CEO Ben Kohn .
  • “We plan on releasing 4 issues…developing new revenue streams…paid fan voting…sponsorship…subscription or membership around the magazine.” — CEO Ben Kohn (Q4 call) .
  • “Licensing is not a linear growth business…we’re focused on fewer but much larger deals…strong pipeline of gaming opportunities where we used to get paid seven figures.” — CEO Ben Kohn (Q&A) .
  • “On a full-year basis, we expect to be free cash flow positive…we have solved our balance sheet issues.” — CEO Ben Kohn (Q&A) .

Q&A Highlights

  • Licensing revenue risk and upside: Management sees the non-MG portion (~14%) coming from overages and new deals set in 2024; targeting larger, higher-quality deals, with gaming highlighted for seven-figure opportunities .
  • Corporate G&A retooling: In-flight restructuring to align with post-Byborg model; H1 2025 transition costs expected; goal is free cash flow positive with lean corporate overhead .
  • Content monetization rationale: Magazine as promotional/brand vehicle; push into podcasts/videos and fan voting to engage audiences without heavy marketing spend; leveraging editorial lens and influencers .

Estimates Context

  • Wall Street consensus estimates via S&P Global were not accessible at time of request due to provider limits; comparisons to consensus are unavailable. Values retrieved from S&P Global are unavailable at this time.

Key Takeaways for Investors

  • Asset-light pivot materially de-risks operations: licensing of digital assets (Playboy Plus/TV/Club) with $20M/year MG structurally improves margin profile and reduces volatility .
  • 2025 outlook is constructive: ≈$120M revenue, positive adjusted EBITDA, and full-year cash generation, with 86% of licensing revenue under MGs; near-term transition costs should abate post-June .
  • Honey Birdette turnaround adds optionality: improving SSS, margins, and cash flow ($6.1M in 2024) support retained ownership and potential valuation uplift .
  • Licensing mix and pipeline shift: Management prioritizes larger, higher-quality deals (e.g., gaming, events, sponsorship) which can drive step-function growth and upside participation via profit share .
  • Balance sheet actions are catalysts: debt forgiveness, preferred conversion, and potential follow-on equity reduce leverage and interest burden; a shareholder-approved follow-on could accelerate deleveraging to < $100M net senior debt by year-end .
  • Execution watch-items: timely completion of digital transition to Byborg (by June), delivery of quarterly magazine cadence and content monetization, stabilization and growth in licensing post-China restructuring .
  • With consensus estimates unavailable, focus near-term on qualitative catalysts and sequential improvement in adjusted EBITDA and cash generation as transition costs roll off and licensing MG flows ramp .